What is Performance Appraisal All Methods Explained

What is Performance Appraisal All Methods Explained What is Performance Appraisal? All Methods Explained6 min read Read ­ing Time: 5 min ­utesWhether you’re in the Human Resource Depart ­ment of your com ­pa ­ny or not, it is impor ­tant to know “What is Per ­for ­mance Appraisal”.With an under ­stand ­ing of the con ­cept and the meth ­ods applied, you can be in a bet ­ter posi ­tion. What is Performance Appraisal? Per ­for ­mance Appraisal is a peri ­od ­ic review of an employ ­ee’s job per ­for ­mance. The process eval ­u ­ates and quan ­ti ­fies an employ ­ee’s per ­for ­mance lead ­ing to salary revi ­sion and pro ­mo ­tion if applic ­a ­ble. The fre ­quen ­cy and terms of the appraisal process vary from com ­pa ­ny to com ­pa ­ny. Usu ­al ­ly, the Human Resource Team dis ­cuss ­es the terms and con ­di ­tions with the can ­di ­date at the time of their join ­ing. Methods of Performance Appraisal Traditional Methods: Ranking It is the old ­est of all meth ­ods and involves rank ­ing indi ­vid ­u ­als from high ­est to low ­est. An employ ­ee with the best per ­for ­mance gets the high ­est rank while the one with the worst gets the low ­est rank. If there are 10 employ ­ees in a com ­pa ­ny, then the Rank ­ing sys ­tem will rank them from 1 to 10. Despite being sim ­ple, com ­pa ­nies with high ­er employ ­ee strength pre ­fer not to use it since it fails to quan ­ti ­fy the rel ­a ­tiv ­i ­ty. Paired Comparison In this method, an employ ­ee is com ­pared with oth ­ers on a one-on-one basis for a par ­tic ­u ­lar trait. Here the num ­ber of times an employ ­ee is rat ­ed bet ­ter decides his final rank ­ing. The lim ­i ­ta ­tion of this method lies in scal ­a ­bil ­i ­ty. Grading Scale Here, cat ­e ­gories of per ­for ­mance are defined for appraisal. For exam ­ple poor, sat ­is ­fac ­to ­ry and out ­stand ­ing; there may be more than 3 cat ­e ­gories. This method is not com ­plete ­ly objec ­tive as the rater may put a large num ­ber of peo ­ple in one cat ­e ­go ­ry. Forced Distribution This method for ­mu ­lates the employ ­ees’ per ­for ­mance into a sta ­tis ­ti ­cal dis ­tri ­b ­u ­tion i .e.10, 20, 40, 20 10%. It proves help ­ful when it comes to review ­ing the per ­for ­mance of a large num ­ber of employ ­ees. Forced Choice Forced Choice Method, found ­ed by J.P. Guil ­ford is based on a series of groups of state ­ments â€" pos ­i ­tive and neg ­a ­tive. The rater sees which state ­ments match an indi ­vid ­ual most appro ­pri ­ate ­ly. Here are some exam ­ples of the state ­ments: Pos ­i ­tive â€" Respon ­si ­ble and can exe ­cute prop ­er ­ly, Skill ­ful and can lead in the best way. Neg ­a ­tive â€" Lacks ini ­tia ­tive and proac ­tive ­ness, Can ­not rely upon, often miss ­es dead ­lines. Checklist The Human Resource Team jots down a list of ques ­tions that are rel ­e ­vant to the respon ­si ­bil ­i ­ties and over ­all per ­for ­mance of an indi ­vid ­ual. Against each ques ­tion, the rater fills the answer as yes or no. The final review takes place on the basis of the aggre ­gate respons ­es. The major draw ­back of this method is that it is time-inten ­sive because it involves prepar ­ing dif ­fer ­ent sets of ques ­tions for dif ­fer ­ent teams. Critical Incidents Methods It usu ­al ­ly revolves around select ­ed crit ­i ­cal inci ­dents and behav ­iors that help in know ­ing whether an employ ­ee’s per ­for ­mance is good or not. Here the rater apprais ­es peo ­ple who are capa ­ble of per ­form ­ing in crit ­i ­cal sit ­u ­a ­tions. Time-con ­sump ­tion and sub ­jec ­tiv ­i ­ty to the sit ­u ­a ­tion are the draw ­backs of this method. Graphic Scale Method Also known as the lin ­ear rat ­ing method, it is the eas ­i ­est method of Per ­for ­mance Appraisal. The process is car ­ried out through print ­ed form. It lists traits like reli ­a ­bil ­i ­ty and effi ­cien ­cy and a range of oth ­er per ­for ­mance char ­ac ­ter ­is ­tics. Each of these char ­ac ­ter ­is ­tics is then rat ­ed from poor to out ­stand ­ing. Most ­ly, a five-point scale is adopt ­ed in this method. Essay Evaluation Method In this method, the review ­er works on an elab ­o ­rate descrip ­tion explain ­ing an employee’s per ­for ­mance. He describes the neg ­a ­tives, pos ­i ­tives and the scope of improve ­ment along with sug ­ges ­tions. It is the sim ­plest method that does not require any spe ­cial for ­mat or tech ­niques. How ­ev ­er, the essay method also has some lim ­i ­ta ­tions. Lack of struc ­ture is a major draw ­back. It often leads to dif ­fer ­ences in the length and con ­tent of descrip ­tions. Also, the final appraisal depends on the writ ­ing skills of the rater rather than the actu ­al per ­for ­mance. Field Review Method Usu ­al ­ly, this method is handy when the review ­er rat ­ings are biased. An offi ­cial from the HR team car ­ries out the review process. Confidential Gov ­ern ­ment orga ­ni ­za ­tions major ­ly reap the ben ­e ­fits of this method. It is often con ­duct ­ed for an office trans ­fer or a salary hike. The report ­ing man ­ag ­er or super ­vi ­sor heads the appraisal meet ­ing con ­duct ­ed. The appraisal is based on strengths, atti ­tude, char ­ac ­ter, atten ­dance, behav ­ior and a few more traits of the employ ­ee. Modern Methods: Management by Objectives The mod ­ern meth ­ods of assess ­ing employ ­ees’ per ­for ­mance came into exis ­tence to over ­come the flaws of tra ­di ­tion ­al process ­es. The first of the new meth ­ods that are used wide ­ly is called Man ­age ­ment by Objec ­tives (MBO). It is a process where ­in the senior and sub ­or ­di ­nate man ­agers of a com ­pa ­ny joint ­ly decide the com ­mon goals to assess the per ­for ­mance of each indi ­vid ­ual. How ­ev ­er, this approach is also not free of draw ­backs. MBO can be time-con ­sum ­ing. Man ­agers and sub ­or ­di ­nates should not lack trust in each oth ­er for this method to work. More ­over, it can lead to set ­ting up of unre ­al ­is ­tic tar ­gets if the man ­age ­ment tends to dom ­i ­nate deci ­sions. 360 Degree Feedback As the name sug ­gests, this method of per ­for ­mance appraisal involves the col ­lec ­tion of feed ­back about an employ ­ee from all. His or her man ­ag ­er, sub ­or ­di ­nates, peers and also clients fill out a ques ­tion ­naire. Then the apprais ­ers use this feed ­back of the ques ­tion ­naire for appraisal. Assessment Centre Method In this case, the assessee par ­tic ­i ­pates in a series of activ ­i ­ties, tasks and work exer ­cis ­es. This helps to draw infer ­ences on the lev ­el of per ­for ­mance. After record ­ing the results, the apprais ­ers meet and col ­late their obser ­va ­tions around the strengths and weak ­ness ­es of the employ ­ees to review them. Behaviorally Anchored Rating Scale (BARS) BARS cov ­ers the advan ­tages of nar ­ra ­tives, crit ­i ­cal inci ­dents, as well as quan ­tifi ­able rat ­ings through a scale hav ­ing spe ­cif ­ic behav ­ioral exam ­ples. As a result, the employ ­ee gets bet ­ter appraisals. Psychological Appraisals The employ ­ee’s future per ­for ­mance usu ­al ­ly deter ­mines the base of his/her appraisal and not their past. A pan ­el of psy ­chol ­o ­gists car ­ries out dif ­fer ­ent sets of tests to rec ­og ­nize an employee’s traits. Sim ­i ­lar to that of crit ­i ­cal inci ­dents method, time-con ­sump ­tion and biased results are the major draw ­backs. Human Resource Accounting Method This method explic ­it ­ly eval ­u ­ates an employee’s per ­for ­mance through the mon ­e ­tary ben ­e ­fits that he or she brings to the com ­pa ­ny. With this in mind, the orga ­ni ­za ­tion often com ­pares the cost of the employ ­ee and the prof ­it the employ ­ee brings to the orga ­ni ­za ­tion. How to Prepare for a Performance Appraisal? Review your Performace Reflect ­ing on what you did espe ­cial ­ly what you achieved dur ­ing the review peri ­od is extreme ­ly impor ­tant. Accord ­ing ­ly, com ­pile a report of the tasks under ­tak ­en and results achieved. This should be com ­ple ­ment ­ing your Key Respon ­si ­bil ­i ­ty Areas (KRAs)by all means. Know your Strengths and Weaknesses Self-eval ­u ­a ­tion will always help you in the long run. Being well versed with your strengths and weak ­ness ­es will def ­i ­nite ­ly help you to be con ­fi ­dent and ask for the defined rewards. Jot down goals for the next year and your Plan of Action First ­ly, pre ­pare a list of goals that you think will add val ­ue to the busi ­ness. Sec ­ond ­ly, for ­mu ­late a prop ­er plan of action for the stat ­ed goals. Last ­ly, decide how to exe ­cute it. Be open Our respons ­es cer ­tain ­ly are based on our sit ­u ­a ­tions. There ­fore, the lack of pos ­i ­tive feed ­back should not elic ­it neg ­a ­tive respons ­es. Most impor ­tant ­ly, try to find the rea ­son behind con ­struc ­tive take ­aways and feed ­backs. Even ­tu ­al ­ly, work on them and strive to be bet ­ter. methods of performance appraisalperformance appraisalwhat is performance appraisal